Rio Tinto Venture Makes Further $10 Million Investment in McEwen Copper
October 11 2023 - 8:55AM
Dow Jones News
By Robb M. Stewart
Mining giant Rio Tinto and automaker Stellantis have boosted
their investment in McEwen Mining's copper subsidiary in a move
that values the business at roughly $800 million.
Rio Tinto's Nuton venture agreed to an additional $10 million
investment that will lift its stake in McEwen Copper to 14.5%. The
two part transactions, which is set to close by Oct. 19, will
involve a private placement of 152,615 McEwen Copper shares and the
purchase of 232,000 shares owned by McEwen Mining in a secondary
sale.
McEwen Mining, which will own just under 48% of its subsidiary
after the investment closes, will receive about $4 million and
McEwen Copper the remaining $6 million, which will be used to
develop the Los Azules copper project in Argentina.
Earlier this year, Rio Tinto's Nuton invested a further $30
million in McEwen Copper in a move that raised its stake to about
14% and value the copper company at about $550 million.
McEwen Copper on Wednesday said it also closed an additional
investment by Stellantis, the parent of brands including Alfa
Romeo, Chrysler, Fiat and Jeep. The automaker bought 1.9 million
McEwen Copper shares in a private placement, increasing its
ownership to just over 19% from roughly 14% it owned in
February.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
October 11, 2023 08:40 ET (12:40 GMT)
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